The WTO
Secretariat report, along with the policy statement by the Government
of Guatemala, will serve as a basis for the first Trade Policy Review
(TPR) of Guatemala by the Trade Policy Review Body of the WTO on 16
and 18 of January 2002.

Guatemala's
strategy of liberalization has contributed to promoting growth and
must be kept up Back
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Guatemala's
multi-pronged strategy aimed at achieving sustainable economic growth
through economic liberalization and public-sector modernization has
contributed to promoting growth, which, however, needs to be sped up
to improve living conditions, according to a WTO Secretariat report on
the trade policies and practices of Guatemala.

The
report says that in recent years, trade has played an important role
in promoting growth in Guatemala. Increases in exports have outpaced
GDP each year since 1996. There has been considerable progress in
reducing tariff and non-tariff trade barriers, although protection
remains significant in a few areas.

The
report adds that economic growth in Guatemala has been steady but will
need to be stepped up to effect a significant improvement in living
standards. This will require in particular a consolidation of, and
further forward movement in, Guatemala's liberalization efforts. In
trade-related areas, further initiatives may be required to achieve
greater efficiency in the domestic market, including by continuing
with the privatization programme and strengthening pro-competitive
policies and regulations.

Guatemala
has Central America's largest economy, with a population of
11.4 million and a per capita GDP of close to US$1,700. Between
1995 and 1998 real GDP grew at an average annual rate of about 4.4%;
subsequently, stagnant private consumption and reduced investment
spending led to a slowdown in 1999 and 2000, with GDP growth rates of
3.6% and 3.3% respectively. Despite this relatively solid growth
performance, due to Guatemala's strong population growth, per capita
GDP has expanded too slowly to improve living standards significantly;
poverty thus continues to be a serious problem.

The
United States is Guatemala's most important trading partner, being the
market for 36% of Guatemalan exports and the source of 40% of its
imports. Other important trading partners are other members of the
Central American Common Market, the European Union, and Mexico.
Between 1995 and 2000, the U.S. dollar value of Guatemalan imports
grew at an average rate of 8.2% annually, well above the 6.9% growth
rate of exports, reflecting in great part unfavourable terms of trade.

Agricultural
goods (WTO definition) account for about 60% of Guatemalan exports and
generate about 23% of the country's GDP. Despite their declining
shares in total exports, coffee, sugar, and bananas continue to be
Guatemala's strongest export products. Over the past years, tourism
and exports of apparel and non-traditional agricultural products have
increased in importance. Intermediate and capital goods dominate
Guatemala's imports. The reports notes, however, that Guatemala's
official commodity trade statistics do not include flows from free
trade zones and maquila enterprises.

The
report also notes that Guatemala grants at least MFN treatment to all
its trading partners. Tariffs are Guatemala's main instrument of
border protection; the average applied MFN rate is 7.0%. Agricultural
imports (WTO definition) are levied an average tariff of 10.2%, while
non-agricultural products excluding petroleum are levied a 6.4% tariff
on average. Alcoholic beverages and spirits face the highest tariffs
with an average rate of 24.8%. Guatemala maintains import tariff
quotas for a number of agricultural products under its Uruguay Round
minimum access commitments.

In
the Uruguay Round, Guatemala bound all its tariffs. While
non-agricultural products were bound at a ceiling rate of 45%,
Guatemala's final bound rates for agricultural products range from 10%
to 257%. Closing the wide margin between applied and bound rates would
further increase the predictability of market access conditions.

Tariff
reductions under preferential agreements have contributed to improved
access to the Guatemalan market for partners. Duty-free access is
offered to most imports from the Central American Common Market.
Preferential tariffs are also offered to Mexico under a bilateral
free-trade agreement, and to Colombia, Cuba, Panama, and Venezuela.
However, the number and scope of Guatemala's preferential initiatives
combined with its institutional weakness, raise concerns.

Irrespective
of their origin and in accordance with the national treatment
principle, imports are subject to domestic taxes, most notably a 12%
value-added tax, applicable on the c.i.f. value of imported goods. In
addition, various goods, such as alcoholic beverages, cement, and
vehicles, are subject to specific consumption taxes.

In
order to strengthen customs procedures, Guatemala obtained a delay
until November 2001 on the application of the WTO Agreement on Customs
Valuation. Minimum import prices for customs valuation purposes are in
place for rice, used clothes, and second-hand vehicles. A new customs
law is expected to be enacted in 2002.

The
use of non-tariff trade barriers appears limited. Guatemala maintains
various import restrictions and prohibitions, which apply equally to
all trading partners, for reasons of security, health, and
environmental protection. Guatemala has not taken recourse to
contingency measures, with the exception of one anti-dumping case,
which was withdrawn by the authorities after a panel was established
to examine its WTO consistency.

The
industrial sector, including manufacturing, construction, mining,
electricity and water, accounts for 20% of GDP. Manufacturing, which
accounts for some 13% of GDP, is largely concentrated in the
processing of agricultural products, geared to the domestic, Central
American and U.S. markets. Other important manufacturing subsectors
are footwear, textiles, metals, and chemical products.

The
services sector contributes some 57% to GDP, with commerce being the
dominant subsector. Pursuant to the Foreign Investment Law, market
access to most services sectors on a non-discriminatory basis is
guaranteed to foreign investors. Despite the significant improvement
made in upgrading the Guatemala's infrastructure, problems remain in
certain sectors, such as financial services and port facilities.

Market
access to financial services is regulated by specific sectoral
legislation. Subject to approval of the regulatory authorities,
insurance companies and banks may incorporate a Guatemalan enterprise.
State-owned enterprises continue to operate in financial services,
maritime transports and telecommunications; however, they represent
only a minor share of the respective sector's output. Minimum local
capital requirements are in place only in the transport sector. The
enactment of a new Telecommunications Law in 1996, together with the
privatization of the state-owned telecommunications company, prepared
the ground for the rapid growth observed in this sector in recent
years. Tourism has developed into an important source of foreign
exchange, generating more than US$500 million annually.

Note
to Editors

Trade
Policy Reviews are an exercise, mandated in the WTO agreements, in
which member countries’ trade and related policies are examined and
evaluated at regular intervals. Significant developments which may
have an impact on the global trading system are also monitored. For
each review, two documents are prepared: a policy statement by the
government of the member under review, and a detailed report written
independently by the WTO Secretariat. These two documents are then
discussed by the WTO’s full membership in the Trade Policy Review
Body (TPRB). These documents and the proceedings of the TPRB’s
meetings are published shortly afterwards. Since 1995, when the WTO
came into force, services and trade-related aspects of intellectual
property rights have also been covered.

For
this review, the WTO’s Secretariat report, together with a policy
statement prepared by the Government of Guatemala, will be discussed
by the Trade Policy Review Body on 16 and 18 January 2002. The
Secretariat report covers the development of all aspects of Guatemala
trade policies since the previous review, including domestic laws and
regulations, the institutional framework, trade policies by measure,
and developments in selected sectors.

Attached
to this press release are the Summary Observations of the Secretariat
report and parts of the government policy statement. The Secretariat
and the government reports are available under the country name in the
full list of trade policy reviews.
These two documents and the minutes of the TPRB’s discussion and the
Chairman’s summing up, will be published in hardback in due course
and will be available from the Secretariat, Centre William Rappard,
154 rue de Lausanne, 1211 Geneva 21.

In recent
years, trade has played an important role in promoting growth and
development in Guatemala. Increases in exports have outpaced GDP each
year since 1996. There has been considerable progress in reducing tariff
and non-tariff trade barriers, although protection remains significant
in a few areas. Most restrictions to foreign investment have also been
eliminated, and a wide-ranging privatization programme has led to
reduced state involvement in production activities and increased
efficiency in key activities. Moreover, legislation to improve
government procurement regulations and the protection of intellectual
property rights has been adopted. These efforts have been part of a
multi-pronged strategy that encompasses unilateral, regional, and
multilateral initiatives aimed at achieving sustainable economic growth
through economic liberalization and public-sector modernization.

Economic
growth in Guatemala has been steady but will need to be stepped up to
effect a significant improvement in living standards. This will
require in particular a consolidation of, and further forward movement
in, Guatemala's liberalization efforts. In trade-related areas,
further initiatives may be required to achieve greater efficiency in
the domestic market, including by continuing with the privatization
programme and strengthening pro-competitive policies and regulations.
Non-distortionary sectoral policies will need to be favoured, bearing
in mind that export-promotion programmes often result in
discrimination against domestically oriented activities. Consolidation
of Guatemala's liberalization efforts would also be aided through
specific capacity-building programmes. Ultimately the success of these
efforts is contingent upon securing lasting institutional stability.
In all these areas the international community can continue to play an
important role.

Guatemala
has Central America's largest economy, with a population of
11.4 million and a per capita GDP of close to US$1,700. Since the
signing of the Peace Accords in December 1996, which ended 36
years of internal armed conflict, one of the main objectives of the
authorities has been to achieve stable and sustainable economic
growth. Between 1995 and 1998 real GDP grew at an average annual rate
of about 4.4%; subsequently, stagnant private consumption and reduced
investment spending led to a slowdown in 1999 and 2000, with GDP
growth rates of 3.6% and 3.3% respectively. Despite this relatively
solid growth performance, due to Guatemala's strong population growth,
per capita GDP has expanded too slowly to improve living standards
significantly; poverty thus continues to be a serious problem.

In
order to meet an agreed Peace Accords target to fund social programmes,
efforts are being made to expand tax revenue; for this purpose, the
value-added tax was increased to 12% in mid 2001. The Government has
also undertaken efforts to strengthen the tax administration and
broaden the tax base, although tariffs and value-added tax on imports
still account for a large part of state income. The fiscal deficit has
ranged between 0.1% and 2.8% since 1995.

Guatemala
maintains a flexible exchange rate system; the Central Bank intervenes
in the market only to moderate exchange rate fluctuations. A law
passed in late 2000 allows the free circulation of machinery and
transport equipment, food products, fuels, and chemicals. The upward
trend in the share of fuels in total merchandise imports reflects the
increases in world prices of foreign currency, with a view to
increasing confidence in the banking system. Disciplined financial
policy has contributed to a reduction in inflation from double-digit
rates at the beginning of the 1990s to 5% in 2000, and has played a
role in keeping the exchange rate to the U.S. dollar relatively stable
since 1999. Real interest rates have shown a rising trend in recent
years and reached almost 15% in 2000.

Guatemala's
current account has registered important deficits in recent years, due
mainly to persistent and growing trade deficits. The deficit has been
financed largely by remittances and privatization income. Returning
capital and privatization inflows increased international reserves to
nearly US$1.9 billion in 2000, equivalent to five months of total
imports.

The
United States is Guatemala's most important trading partner, being the
market for 36% of Guatemalan exports and the source of 40% of its
imports. Other important trading partners are other members of the
Central American Common Market, the European Union, and Mexico.
Between 1995 and 2000, the U.S. dollar value of Guatemalan imports
grew at an average rate of 8.2% annually, well above the 6.9% growth
rate of exports, reflecting in great part unfavourable terms of trade.

Agricultural
goods (WTO definition) account for about 60% of Guatemalan exports.
Despite their declining shares in total exports, coffee, sugar, and
bananas continue to be Guatemala's strongest export products. Over the
past years, tourism and exports of apparel and non-traditional
agricultural products have increased in importance. Intermediate and
capital goods dominate Guatemala's imports.

Guatemala
is in the process of consolidating its legal and institutional
framework; the strengthening of governance is a priority and a
necessary condition for Guatemala to achieve its ambitious development
objectives. The Ministry of Economy is the lead agency for all issues
related to foreign trade. Guatemala joined the GATT in 1991 and became
a WTO Member in July 1995. As an international treaty, the WTO
Agreements take precedence in Guatemala over domestic legislation.
Guatemala has been active in the multilateral trading system, taking
part in the negotiations on telecommunications services, and making
use of the dispute settlement mechanism on a few occasions.
Guatemala has also participated in the mandated negotiations on
services and, as a member of the Cairns Group, on agriculture.

Guatemala
has increasingly participated in preferential trade arrangements; the
Central American Common Market is at the centre of its regional trade
relations. Guatemala has a Free Trade Agreement (FTA) with Mexico, now
supported by new initiatives for closer physical integration between
the two and with other countries in the region. Negotiations for FTAs
with Canada, Chile, the Dominican Republic, and Panama have been
initiated or concluded; the Agreement with the Dominican Republic was
expected to enter into force in late 2001. Further negotiations with
El Salvador, Honduras, and Nicaragua on the formation of a customs
union, and an agreement on trade in services and investment are under
way. Guatemala also has Partial Scope Agreements with Colombia, Cuba,
and Venezuela, and participates in the negotiating groups of the Free
Trade Area of the Americas.

The
number and scope of these preferential initiatives, each imposing its
own negotiating and implementation demands, combined with Guatemala’s
institutional weaknesses, raises questions about its capacity to
participate effectively in all such initiatives. New FTAs are
compounding trade policy implementation difficulties by, inter alia,
requiring the administration of different tariff-reduction programmes
and rules of origin. Incompatibilities between agreements may also
emerge, for example with respect to customs valuation or safeguard
measures; provisions in some of Guatemala’s FTAs take precedence
over multilateral rules.

Between
1996 and 1998, Guatemala implemented an ambitious privatization
programme; however, the programme has since slowed considerably
and a number of enterprises, mostly in the services sector, remain
state-owned. The privatization programme was accompanied by the
enactment of new telecommunications and electricity laws that ended
state monopolies in these sectors and opened them to
private-sector participation. The Foreign Investment Law of 1998
grants national treatment to all foreigners with only few sectoral
exceptions, notably transport.

Guatemala
grants at least MFN treatment to all its trading partners. Tariffs are
Guatemala's main instrument of border protection; the average applied
MFN rate is 7.0%. Agricultural imports (WTO definition) are levied an
average tariff of 10.2%, while non-agricultural products excluding
petroleum are levied a 6.4% tariff on average. Alcoholic beverages and
spirits face the highest tariffs with an average rate of 24.8%.
Guatemala maintains import tariff quotas for a number of agricultural
products under its Uruguay Round minimum access commitments.

In
the Uruguay Round, Guatemala bound all its tariffs. While
non-agricultural products were bound at a ceiling rate of 45%,
Guatemala's final bound rates for agricultural products range from 10%
to 257%. Closing the wide margin between applied and bound rates would
further increase the predictability of market access conditions.

Tariff
reductions under preferential agreements have contributed to improved
access to the Guatemalan market for partners. Duty-free access is
offered to most imports from the Central American Common Market.
Preferential tariffs are also offered to Mexico under a bilateral
free-trade agreement, and to Colombia, Cuba, Panama, and Venezuela.

Irrespective
of their origin and in accordance with the national treatment
principle, imports are subject to domestic taxes, most notably a 12%
value-added tax, applicable on the c.i.f. value of imported goods. In
addition, various goods, such as alcoholic beverages, cement, and
vehicles, are subject to specific consumption taxes.

In
order to strengthen customs procedures, Guatemala obtained a delay
until November 2001 on the application of the WTO Agreement on Customs
Valuation. Minimum import prices for customs valuation purposes are in
place for rice, used clothes, and second-hand vehicles. A new customs
law is expected to be enacted in 2002.

The
use of non-tariff trade barriers appears limited. Guatemala maintains
various import restrictions and prohibitions, which apply equally to
all trading partners, for reasons of security, health, and
environmental protection. Guatemala has not taken recourse to
contingency measures, with the exception of one anti-dumping case,
which was withdrawn by the authorities after a panel was established
to examine its WTO consistency.

Legislation
on free-trade zones and maquila enterprises constitute Guatemala's
main instruments for export promotion. Pursuant to these arrangements,
exporting enterprises may, under certain conditions, benefit from
exemptions from import duties and various internal taxes. Guatemala
does not make use of official export credits or insurance programmes
to promote exports.

Guatemala
benefits from various GSP schemes and the unilateral U.S. Caribbean
Basin Initiative. Guatemalan raw cane sugar exports to the United
States benefit from preferential tariff quotas. Guatemala's textiles
and clothing exports to the United States are also subject to quotas.
Export quotas are in place for products covered by the WTO Agreement
on Textiles and Clothing. Guatemala maintains export taxes only for
the coffee sector.

Government
procurement is regulated by the Government Contracts Law of 1992,
which accords national treatment to foreign suppliers of goods and
services. Guatemala does not have a comprehensive legal framework for
competition policy but the authorities are preparing such a framework.
Although there are sector-specific regulations to ensure that domestic
markets remain competitive, the information available suggests that
competition is restricted in some key sectors, such as financial
services.

The
WTO Agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPS) became part of Guatemala's legislation through its
ratification of the Marrakesh Agreement. Subsequently, Guatemala has
undertaken legal and administrative reforms to facilitate the
protection of intellectual property rights, such as the enactment of
new copyright and industrial property laws. Annual registrations of
intellectual property rights have increased substantially since 1995.

Agriculture
generates about 23% of Guatemala's GDP. Despite its decreasing share
in GDP, agriculture remains a central sector of the Guatemalan economy
due to its contribution to employment and export earnings. However,
Guatemala's two main agricultural exports, coffee and sugar, have come
under considerable pressure in recent years due to adverse
international market conditions.

The
industrial sector, including manufacturing, construction, mining,
electricity and water, accounts for 20% of GDP. Manufacturing, which
accounts for some 13% of GDP, is largely concentrated in the
processing of agricultural products, geared to the domestic, Central
American and U.S. markets. Other important manufacturing subsectors
are footwear, textiles, metals, and chemical products.

Guatemala's
special fiscal arrangements for free trade zones and maquila
enterprises appear to have favoured particularly the production of
various non-traditional goods, although no precise estimates exist.
These goods comprise agricultural products such as cut flowers and
specialty vegetables, fishery products such as shrimps, and
manufactures, in particular textiles and apparel. As foreign trade
under these special arrangements is not recorded, actual exports in
these sectors as well as imports of necessary inputs may be
underestimated in official trade statistics.

The
services sector contributes some 57% to GDP, with commerce being the
dominant subsector. Pursuant to the Foreign Investment Law, market
access to most services sectors on a non-discriminatory basis is
guaranteed to foreign investors. Market access to financial services
is regulated by specific sectoral legislation. Subject to approval of
the regulatory authorities, insurance companies and banks may
incorporate a Guatemalan enterprise; foreign banks may also establish
branches or subsidiaries.

Guatemala's
commitments under the GATS are relatively limited, covering only five
service categories, as they bound the policy framework in place before
the beginning of Guatemala's privatisation programme and the enactment
of the Foreign Investment Law.

State-owned
enterprises continue to operate in financial services, maritime
transports and telecommunications; however, they represent only a
minor share of the respective sector's output. Minimum local capital
requirements are in place only in the transport sector. The enactment
of a new Telecommunications Law in 1996, together with the
privatization of the state-owned telecommunications company, prepared
the ground for the rapid growth observed in this sector in recent
years. Tourism has developed into an important source of foreign
exchange, generating more than US$500 million annually. Despite the
significant improvement made in upgrading the Guatemala's
infrastructure, problems remain in certain sectors, such as financial
services and port facilities.

TRADE
POLICY REVIEW BODY: GUATEMALA
Report by the Government  Part II

Changes
in the economic environment

A
series of stabilization and structural adjustment measures were
introduced in Guatemala from 1991 onwards with the aim of increasing
economic efficiency through the implementation of measures to control
inflation, strengthen the balance-of-payments and seek to create
suitable conditions for sustainable economic growth. This involved a
series of structural reforms in the areas of trade, finance, public
administration, monetary policy and fiscal policy, etc. Thus, economic
performance in the period 1991-2000 was marked by the effects of the
application of these measures, as well as by the efforts to adapt the
domestic economy to the demands of the economic globalization process
and to non-economic factors.

The
period in question was marked by general price stability as a result
of the efforts of the monetary authority to match the levels of
liquidity to the requirements of the economy and thus bring about a
gradual reduction in inflation. Accordingly, the variation in domestic
prices showed a downward trend, with an average rate during the period
of 9 per cent. It should be added that in the last four years
inflation has averaged 6.1 per cent.

In
recent years the basic objective of monetary, exchange and credit
policy has been to promote general price stability based on the
conviction that that this is the best contribution that this policy
can make to achieving sustainable growth in production and employment
and, consequently, to the orderly development of the domestic economy.
Accordingly, in 2000 the strategy underlying the monetary, exchange
and credit policy was directed to restoring confidence in the currency
and strengthening the domestic financial system. This strategic
objective called for the disciplined application of policy measures
aimed at ensuring: (a) a disciplined monetary policy; (b) the
strengthening of the domestic financial system through modernization
of the regulatory framework; and (c) fiscal discipline.

In
response to the challenges arising from the worldwide globalization
process, at the end of 1989 the monetary authority decided to
introduce greater flexibility into the foreign exchange market.
Accordingly, from 1994 onwards the exchange rate and the exchange
allocation in that market were allowed to find their own levels. In
addition, in 1996 the electronic system for foreign currency
transactions (SINEDI) came into operation, on the principle of
bringing certainty and transparency to operations carried out in the
market by guaranteeing freedom in foreign exchange operations to
economic agents.

The
balance-of-payments current account deficit as a percentage of the GDP
exceeded 5 per cent in some years during the last decade. It should be
pointed out that in those years the current account deficit was
financed, inter alia, by a net inflow of foreign capital which led to
an increase in the International Currency Reserves.

In
2000 the balance-of-payments current account balance as a percentage
of GDP fell as compared with the previous year, going from 5.5 per
cent in 1999 to 4.8 per cent in 2000. This result was helped by the
performance of services and transfers, which recorded surpluses higher
than in the previous year. In addition, in 1998 direct foreign
investment amounted to US$673 million as a result of strong
privatization activity.

During
the last decade economic policy measures have also been introduced
with a view to the economic modernization of the country, encouraging
a greater opening up of the domestic economy and a better allocation
of resources. Consequently, during the period 1991-2000 the Gross
Domestic Product (GDP) grew at an annual rate of 4.1 per cent, leading
to a relative improvement in the per capita income of the population.
It should be added that in recent years the country's economic growth
has been affected by various factors, in particular the external
shocks that have led to a deterioration in the terms of trade, the
damage caused by hurricane Mitch and the global economic slowdown.

At
the beginning of the decade the central government found itself in a
critical situation with a fiscal deficit of around 2 per cent. That
meant raising funds to cover current expenditure and left no room for
any increase in investment. As a result, it became imperative to
revise the fiscal policy with a view to eliminating the
above-mentioned deficit and avoiding an increase in the foreign debt.
By the end of 2000 the fiscal deficit as a percentage of GDP amounted
to 1.8 per cent and the tax burden stood at 10.1 per cent.

The
total trade in goods, that is to say exports together with imports,
increased between 1991 and 2000 at an annual cumulative rate of 10.5
per cent. Exports grew at an annual cumulative rate of 9.2 per cent,
reaching an f.o.b. value of US$2,708.5 million in 2000, while imports
increased at an annual cumulative rate of 11.4 per cent, standing in
2000 at a c.i.f. value of US$4,885.3 million.

In
the growth in the value of exports it is important to draw attention
to the increase recorded in exports of coffee and bananas, as well as
of other products, to the rest of the world and to Central America.
With regard to imports there were considerable increases recorded in
consumer goods, capital goods, raw materials, and fuel and lubricants.

A
fundamental objective of the country's economic policy in recent years
has been to reduce the role of the State in the economy and promote
greater private sector participation. Accordingly, from 1996 onwards
as part of the economic policy measures directed towards the economic
modernization of the country the government initiated a process of
disposing of State assets through the sale of 80 per cent of the
shares of the Empresa Eléctrica de Guatemala (EEGSA), 95 per cent of
the shares of the Empresa de Telecomunicaciones de Guatemala, S.A. (TELGUA)
and of the telephone-band operating concession, the sale of two
distribution companies of the Instituto Nacional de Electrificación (INDE),
the usufruct of the railway company of Guatemala (FEGUA) and the
administration and operation of the postal services.

Another
aspect of fundamental importance is the progress achieved in
modernizing the financial system under the auspices of the
Modernization Programme for the National Financial System. In this
connection, steps have been taken to strengthen the country's
financial legislation, so as to improve the competitiveness of the
institutions on the one hand and, on the other, protect the interests
of depositors, as well as safeguarding the liquidity, solvency and
stability of the national financial system as a whole.

Within
the framework of the programme to strengthen the national financial
system the following draft laws are now under discussion and await
approval by the relevant authorities: the Law on Banks and Financial
Groups, the Law on Financial Supervision, the Organic Law of the Bank
of Guatemala, the Currency Law, and the Law on Insurance Activities.
The legal reforms proposed are intended to strengthen the national
financial system and ensure greater supervision, by providing a
general legal framework that will bring greater legal certainty and
help to make the financial institutions more efficient, solid,
transparent and competitive, on the basis of a preventative approach,
and thereby contributing to the development of the domestic economy
and strengthening public trust in saving and investment.